Are You Considering Investing in EdTech? The Time is Now

This is a great question that I confidently answered yes to three years ago, and the answer is still the same – a resounding yes.

Here are the key reasons why EdTech investments are a smart choice.


Digital learning and entertainment are merging


Digitization, combined with video and gamification, is developing rapidly to deliver new and engaging user experiences that merge learning with entertainment. Companies that make learning interactive, fun, and personalized for students will be the winners in the EdTech race.


Enhancing student engagement is a primary concern for educators


This increased focus has led to the rise of many EdTech companies to deliver more innovative and effective ways to teach students through gamification, artificial intelligence (AI) skills-based assessment, and personalized learning experiences.


More teachers are seeking remote career opportunities


The desire for educators to teach remotely has made EdTech companies very attractive for these job seekers. As a result, EdTech companies are able to attract and retain highly qualified teachers.


Globalization enables education opportunities, particularly within the language learning sector


Without geographical boundaries, EdTech companies are now connecting students and educators all over the world. This has been an especially important driver for the growth of the English as a Second Language (ESL) learning market that serves non-native English language learners. According to J’Son & Partners, this segment of the EdTech market will reach $10 billion globally by the end of this year.



After-pandemic development


The pandemic has propelled exponential growth of the EdTech industry. In 2021, EdTech reached a record 5% of the global education market, growing to $268 billion. However, this dynamic growth will continue.

New users have become reliant on online education platforms after increased reliance on them during self-isolation. As we continue to embrace hybrid-learning models, the demand for online education will keep growing. In fact, its advantages have proven to be so attractive that it is hardly possible to imagine the future of education without online learning. In fact, HolonIQ forecasts that by 2025, the global EdTech market will reach $404 billion.


Language learning is a segment of the EdTech market worth following


The language learning segment accounts for 21% of the global EdTech market with significant growth potential. Studies show that knowing a foreign language improves a person’s lifetime earnings and career growth.

According to the research of the Higher School of Economics in Russia in 2019, knowledge of a foreign language increases an employee’s income by an average of 11% in Austria and Russia and almost 39% in Spain. Additionally, foreign language skills contribute to lower unemployment rates. For migrants who speak the language of their host country, income increased by 5-35%, according to a study performed in seven developed countries.

For these reasons, the future of EdTech is bright and worthy of consideration for tech investors.


Written by Max Azarov, CEO and co-founder at Novakid, an online education platform for English as a second language (ESL) children around the world to master English.